Question

The principal P 0 is invested in an account that pays an annual interest rate r (written as a decimal), compounded n times per year.

The formula for the amount of money in the account at the end of the first period is given by the formula:

https://wca.sooschools.com/media/g_alg02_ccss_2013/9/formula_first_period.gif

1. Explain why the amount of money in the account at the end of the first year is given by the formula with n as the exponent:

https://wca.sooschools.com/media/g_alg02_ccss_2013/9/formula_first_period_n.gif